Wife is due for a new car but wants to wait(GA Ad Velorem tax)..
 

In GA we have an ad velorem tax. Think of it as an annual property tax on your car that is a present you get to give the state every year the month of your birthday. Anyway its finally going away in March of 2013. Basically if you buy a new or used car from a stealership after Marchwhateverthefukdayitis all you pay is your counties one time sales tax and thats it. No more annual ad velorem tax. To put this in perspective my G8 runs me like $270 a year and as the car depreciates the tax amount goes down. Now if you buy before Marchwhateverthefukdayitis from a dealer you get stuck with the sales tax from your county and the annual ad velorem tax until you sell the car. As a result March and April are gonna be a big month for dealer sales in GA due to people holding off on buying. BTW no sales tax on used private party sales, just ad velorem. I always buy year or two old cars and am willing to travel to get them becasue of this private party savings.

ANYWAY... Now that i edumucated all you guys heres the deal. My wifes car is 5 years old (we have had it for 3) and pushing 90k. She wants a new car and is due for a new car but her logic is to hold off until Marchwhateverthefukdayitis so she doesn't have to pay the ad velorem moving forward for the next 3 or 4 years she has her next car. I get it. It makes sense. What she doesn't get is that her car needs tires now ($900), needs a module thats associated with the AHS ($500), and probably will need pads too before Marchwhateverthefukdayitis ($150). That's $1,500-$1,600 worth of shit inside of the next 6 months provided nothing else comes up that her car will need.

Now guess how much the ad velorem tax is on What she would replace her car with.

$250-$300 a year which will go down every year as it depreciates.. So on the high end of $300 a year over 3 years it will be $900 versus $1,600.

But, she still wants to wait.. :banghead:

BTW here's a cool site i came across GA people.. https://etax.dor.ga.gov/advalorem/default.aspx

Another thought is, if sales in GA will be as high as you say they will be in March and April. You could probably save another $1k or more on the vehicle she wants now, vs. next year.

I got hit with that in 2006/2007 and I wasn't even a damn resident. Military sued the tax office and the person in charge big time over that.

I had to pay sales tax on my last used vehicle purchase here. Anyone moving into the state would have to pay sales tax on any car they registered here but I think that has been repealed.

That doesn't make any sense. What part about spending a minimum of $700 extra does she not understand?

But don't forget time value of money too. $900 cash upfront is NOT the same thing as $300 a year for 3 years.

We wouldn't be affected by any influx in dealer sales as we would be buying private party.

women<------------------------------------------------------------------------------------------------------------------------------->logic

You think that still won't effect the price of a used car?

But also, if you do those repairs, will you be able to get more money for the car in 6 months? You might be able to break even.

Oh yeah, I forgot. :funny:

Yeah, but then he gets screwed paying the ad velorem tax until he sells the car. After 4 years or so he could be potentially paying more int taxes than he saved.

You're missing the point of his post. He wants to buy now and pay the Ad Velorem taxes, which at most will be $1,000.

She wants to put $1,500 in repairs on her existing car, just to drive it until March when she get get a new car, to save $1,000 in taxes.

But if there's a chance you can get an extra $500+ out of the sale of her existing car, because of the new tires/no check engine light. Then maybe, just maybe she might have a point. Especially if car prices goes up for a few months, as everybody has held off buying for a few months, everybody will buy all at once.

Thanks Mark,I didn't know that Ad Velorem tax was going away,wonder what will take it's place,they don't give up easy when repealing taxes.

Dunno.. Gonna spell this all out for her one night this week when i have time to get a tire and pad quote and run the numbers on the taxes on that link i posted for the 3 cars she's looking into right now. The more i think about it the more i think she forgot about the AHS issue as it was diagnosed 2 months back and i have been procrastinating about fixing it due to wanting to get her into something newer.

I might do a powerpoint presesntation for her with the help of my kids.. :lol:

Not really as i travel to find the best deals. Bought my Z06 in Chicago, S4 in Houston, wifes Santa Fe in Boston, Wifes Rabbit in Phili, etc.. I'm all about the private party deals at the best price.

Check this out.. He may explain it better than me. Forgot about the 1% sales tax increase part.

NEW INFO: Sales tax AND ad valorem tax on vehicles in Georgia being replaced by "title tax" | 11alive.com

Not that i just saw that it seems like their will be a tax on the blue book value of used cars now after Marchwhateverthefukdayitis. All the more reason to buy now in my opinoin..:island14:

Looks like dealers have finally leveled the playing field against private party sales.. That sux.

If he doesn't do the repairs, he might not find a buyer for the car, except at a rock bottom giveaway price. Would you buy a car with 4 slick tires and other mechanical work needed? I would go on to the next car that everything was operating normally. Most folks don't want to deal with repairs right out of the gate.


I vote for wait until the tax thingie goes away, although I bet the price of used cars will spike for a few months. This is bad on the buying end, but will be good on the selling end.

TWO questions...WTF is about 4 tires running 900 bux?? what you buying??

120 bux/wheel out the door is your price....all else is a rip off....

500 bux for some module?? what module, those call out letter/number mean nothing, what it DO??

90k is nothing, drive it a easy 250k miles.....

:rofl:

Tires are far from bald but it will need em soon.

And i cleared the CEL.:D